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Living Your Best Financial Life

Living Your Best Financial Life

I am passionate about the idea of my clients living their best possible financial lives. When I bring this up to people, most of them start talking about their legacy. 

My question to you is this: “What kind of legacy are you talking about?”

We shouldn’t allow the idea of a “legacy” to be one that is only financial in nature. 

Legacies are memories. They’re times you’ve spent with your family, your grandchildren, and your children. Legacies are spending time with the people who you truly value in your life. 

So, what does this have to do with financial planning?

I believe the way you actually create your financial plan should incorporate how you want to live your life. Think of what your perfect life and legacy looks like and work backward from there. 

There have been multiple times the financial industry will dictate to you what stocks you should buy, what you should invest in, and so on. 

Put that aside for a moment and ask yourself the most important question: How do I want my life to look?

That is the beginning of a well-thought-out plan.

There’s an analogy I often use when explaining this process to clients. It involves the in-depth process of building a house.

When you sit down with an architect to build a home, you have a pretty good idea of what you’re looking for. The architect may ask you questions and offer expertise on the process, but you know a few key things:

What do you like? What don’t you like? What do you envision your home looking like? How do you want your family gatherings, holidays, and memories to look inside your home?

That’s how I believe you should start your financial planning journey.

We don’t believe in pushing a product. For us, it’s about your life and the investments you’ve made along the way. By investments, I mean not only your money. I mean the time and energy you’ve invested in creating a financial life you can be comfortable with

AWHILE back, someone said to me, when a baby is born you have approximately one thousand weeks until they go to college. 

What a profound statement. 

When I heard that, it made me think about my clients and what happens when they retire. How many weeks of good living do they have? And how many weeks of their best financial life?

The fact that I am able to be a part of that planning decision gives me a feeling I’ll never be able to properly express. It’s an honor and a privilege to help people plan their definition of true wealth

If you’d like to learn more, call 248.828.8000 or fill out the form below to schedule an appointment with one of our advisors.

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Was This October Signaling the Next Bear Market?

Was This October Signaling the Next Bear Market?

Article republished with the permission of Barber Financial Group.
Original article: Was This October Signaling the Next Bear Market?

We’ll be featuring insights from Dean Barber, host of, “America’s Wealth Management Show,” the radio show which our very own Ken Osiwala co-hosts.

This last month has been a pretty typical October. Two of the last three major bear markets have begun in the month of October and so many people are asking, “Was this October the signal of the next bear market to come?”

It’s October 31st as of writing this and we’re going to talk about the stock market, and our thoughts on whether to not we think the next bear market is coming. One thing we do know is that if this is the start of the next bear market, we’re ready. The strategies that we employ at Osiwala Financial Group are not designed to mitigate short-term volatility, that’s impossible to do. Our goal is to mitigate and reduce the depth of losses and have programs in place that can provide a stopping point when markets get bad.

It is important that you have a proactive plan that’s well thought out and helps prepare you for these volatile times. What you never want to do is watch it go down and think to yourself, “I hope this doesn’t get worse” and hopefully that’s exactly why you’ve hired us. If you aren’t a client, the most important thing to do is to reach out to your advisor, see if they have a plan, and if they don’t get a second opinion with one of our advisors. It is important to feel comfortable and knowledgeable about your own plan and we make that a priority when working with our clients.

As you take a look at the markets in October, you’ll see that it’s all down. The worst performing index for month was the NASDAQ. We’ve got some bad things happening, but as you notice we’re up about 750 points over the last few days. However, that’s not enough to make up for all the damage that was done earlier in the month.

Year-to-date, we had a run-up in January, a collapse in February and April and now we have another collapse in October. This is the third time this year that the indices have been in negative territory. We think we will come out of this, but you never know. Since 1950 we have had seven years where the markets were positive year-to-date going into October, and then October took away all of those gains taking the indices into negative territory. Six out of those seven times the markets ended up positive for the year but that isn’t enough to tell us that things will be ok.

Looking at other data, wage increases are up by 3.1% on an annualized basis which is the highest wage increases in a decade. Unemployment is at 3.7% and we haven’t seen that since 1969. The Yield on the 10 Year Treasury remains at 3.15%. The Fed is raising rates and they will again in December. But where the markets are today, stocks (from a price to earnings ratio perspective) are valued lower than where they were in January. Corporate earnings are up 10% and the housing market is still strong.

We have three things going on right now. First, trade negotiations with China, second, political season and Midterm Elections, and third, the interest rates. Powell has raised rates 3 times this year. With that being said, the 10 Year Treasury Yield is still not showing the pressure on the long-term rates. In fact, inflation is still extremely benign running at an annualized rate at 2.7%. This pick up in wages could cause us to start to see a little bit of pressure on inflation, we’ll have to wait and see. The point is when we think about the fundamentals and look at the real things happening in the economy, you typically don’t see Bear Markets start in times of economic expansion, robust growth, and low unemployment. We think the markets were blowing off steam but there’s no way to know that for sure.

If we take a look at our short-term indicator, we realize how sensitive it really is. Some of our clients who are in some of our more dynamic portfolios may have noticed that we make short-term reactions based on this indicator. To clarify further, the short-term indicator tells us whether the outlook is positive or negative for the short-term (over the next few days to the next few weeks).

Out of everything we’ve covered in this blog, the most important thing to do is to talk to your financial advisor and make sure you understand how your portfolio is positioned. We work very hard to make sure you can accomplish your long-term goals. We know as Financial Advisors in Detroit and with decades of experience that we will experience volatility. To us this is second nature. We also know that when the markets get bad, meaning it’s down 30-50% we have to have mechanisms in place to help avoid it.

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